DLR vs EQIX: Dividend Yield, Growth & Safety Comparison
Digital Realty Trust, Inc. (DLR) and Equinix Inc (EQIX) are both in the Real Estate sector, making them natural rivals for dividend investors. DLR edges ahead on yield at 2.83% versus EQIX's 2.14%. For dividend growth, EQIX leads with a 5-year CAGR of 13.1% versus DLR's 1.3%. Both stocks carry a "Safe" dividend safety rating. EQIX is a Dividend Challenger with 9 years of consecutive increases.
Key Metrics Comparison
| Metric | DLR | EQIX |
|---|
| Dividend Yield | 2.83% | 2.14% |
| Annual Dividend | $4.88 | $18.33 |
| 5-Year CAGR | 1.3% | 13.1% |
| Payout Ratio | 1% | 2% |
| Consecutive Years | 0 | 9 |
| Price | $180.51 | $954.92 |
Yield Comparison
Digital Realty Trust, Inc. (DLR) currently yields 2.83%, which is solid for the broader market. That's 0.69% more than Equinix Inc (EQIX), which yields 2.14%. In dollar terms, DLR pays $4.88/share annually versus EQIX's $18.33/share.
Dividend Growth
Over the past five years, EQIX has grown its dividend at a 13.1% CAGR compared to DLR's 1.3%. DLR: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 1.3% and the 10-year rate of 3.7%. EQIX: Dividend growth is accelerating — the 3-year CAGR of 13.8% exceeds the 5-year rate of 13.1% and the 10-year rate of 11.6%.
Dividend Safety
DLR's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x. EQIX's dividend safety is rated "Safe." The payout ratio of 2% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.6x. Both have similar payout ratios — DLR at 1% and EQIX at 2%.
Income Comparison
A $10,000 investment in DLR generates approximately $283/year in dividend income, compared to $214/year from EQIX — a difference of $69/year. At $100,000, that gap widens to $690/year.
Verdict
- Best for income: DLR
- Best for growth: EQIX
Frequently Asked Questions
Which has a higher dividend yield, DLR or EQIX?
Digital Realty Trust, Inc. (DLR) has a higher dividend yield of 2.83% compared to Equinix Inc (EQIX) at 2.14%.
Is DLR or EQIX a better dividend growth stock?
Equinix Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to Digital Realty Trust, Inc.'s 1.3%.
Which is safer for dividend income, DLR or EQIX?
Digital Realty Trust, Inc.'s dividend safety is rated "Safe" while Equinix Inc is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.7x. The payout ratio of 2% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.6x.
How much income does $10,000 in DLR vs EQIX generate?
A $10,000 investment in DLR generates approximately $283/year in dividends, while the same amount in EQIX generates about $214/year.
Is DLR or EQIX a Dividend Aristocrat?
Equinix Inc is a Dividend Challenger with 9 consecutive years of increases. Digital Realty Trust, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, DLR or EQIX?
Digital Realty Trust, Inc. has a lower payout ratio of 1% compared to Equinix Inc's 2%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DLR vs EQIX: which is better for retirement income?
It depends on your priorities. DLR for current income, EQIX for dividend growth. Many retirement investors hold both for diversification.
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